Side-by-side tax comparison between New Jersey (10.75% top rate, graduated) and Rhode Island (5.99% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
New Jersey uses a graduated income tax (1.4-10.75%) while Rhode Island has a graduated system (3.75-5.99%). On a $100K salary, New Jersey takes $6,988 in state and local taxes compared to Rhode Island’s $3,894 \u2014 a difference of $3,094.
Both states use graduated brackets, but New Jersey’s top rate of 10.75% is higher than Rhode Island’s 5.99%.
Rhode Island wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | New Jersey | Rhode Island | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,525 | $32,763 | +$1,238 | Rhode Island |
| $50K | $38,861 | $40,408 | +$1,547 | Rhode Island |
| $60K | $46,198 | $48,054 | +$1,856 | Rhode Island |
| $75K | $56,297 | $58,617 | +$2,321 | Rhode Island |
| $100K | $72,138 | $75,232 | +$3,094 | Rhode Island |
| $120K | $84,810 | $88,523 | +$3,713 | Rhode Island |
| $150K | $103,270 | $107,911 | +$4,641 | Rhode Island |
| $200K | $134,912 | $141,100 | +$6,188 | Rhode Island |
| $250K | $165,795 | $173,530 | +$7,735 | Rhode Island |
| $300K | $194,366 | $203,648 | +$9,282 | Rhode Island |
Take-home pay only tells part of the story. New Jersey has a cost of living index of 115 while Rhode Island is at 105 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $62,728 in New Jersey vs $71,649 in Rhode Island. The take-home winner also wins on purchasing power.
For a single earner at $100K filing jointly, take-home becomes $77,723 in New Jersey and $80,817 in Rhode Island \u2014 a difference of $3,094. The gap remains similar regardless of filing status.
On paper, moving from New Jersey to Rhode Island would save $3,094/year on a $100K salary, or $15,470 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,094/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.